It was concluded in 1854, and for twelve years during a most critical period, when railways and railway systems were beginning to be established, the great bulk of the trade of Canada was diverted to the United States, the lines of transportation naturally developed mainly from north to south, and the foreign handling of our products was left very much to the United States. The Crimean war broke out in 1854 and lasted till 1856, raising the price of farm produce two-fold, and adding largely to the prosperity of the Canadian people. The large railway expenditure during the same period also aided to produce an era of inflation, while during the last five years of the existence of the treaty the Civil War in the United States created an extraordinary demand, at war prices, for almost everything the Canadian people had to sell. The result was that, from reasons quite disconnected from the reciprocity treaty, during a great part of its existence the Canadian people enjoyed a most remarkable development and prosperity. The United States Government, although the treaty is said to have been of more real value to them than to Canada, at the earliest possible moment gave the two years' notice to abrogate it, and they did so evidently in the hope that the financial distress and loss that its discontinuance would bring upon the people of Canada would create at once a demand for annexation. In a sense they were right; talk in favour of annexation was soon heard from a few, but the old sentiment of loyalty to the Empire was too strong, and the people turned to the idea of the confederation of the Provinces and the opening up of trade with the West Indies and other countries. The Confederation of Canada was the result, and the Dominion was established on the 1st of July, 1867. My object in writing the following pages is to describe more particularly from my own recollection, and my own knowledge of the facts, the movement in favour of the Unity of the Empire which has been going on during the last forty years. CHAPTER I CONDITION OF AFFAIRS IN CANADA BEFORE CONFEDERATION